While fighting off a takeover attempt by activist investor Carl Icahn, Oklahoma City-based SandRidge Energy is reporting a net loss of $41 million in the first quarter of 2018. The loss amounts to $1.18 per share.
But the company’s adjusted net income amounted to $5 million or 15-cents a share while the operating cash flow came to $21 million. Earnings before interest, income taxes, depreciation, depletion and amortization was $40 million.
Included in the company’s first quarter results was a $32 million charge related to employee benefits and that included $19 million in cash and $13 million in the form of stock-based compensation.
Liquidity for the quarter totaled $436 million including $418 million in borrowing capacity.
“The first quarter performance for SandRidge demonstrates the company’s consistent ability to execute and adapt to change,” said Bill Griffin, President and CEO. “We successfully initiated a shift in strategy and leadership, while continuing to remain focused on delivering solid operating and financial results.”
He pointed to reduced overhead expenses and improved operating margins.
During the quarter, SandRidge completed four new NW STACK Meramec wells with an average 30-day IP of 675 Boepd. It also has seven new North Park wells currently scheduled for completion in northern Colorado.
However, Griffin indicated a reassessment of the company’s drilling portfolio in the current commodity price environment led to reallocation of part of the development capital to the Mississippi Lime.
“We now plan to drill four new wells during the third quarter which are expected to provide competitive returns and further demonstrate the current undeveloped value in this area after an extended period of drilling inactivity,” he said.
Production during the quarter totaled 3.2 MMBoe overall including 2.9 MMBoe in the Mid-Continent and 213 MBo in the North Park Basin.
